Firm advocates support for small businesses

The Chief Executive Officer (CEO), Silky Touch Ltd, Victor Okoli, has called on the government to pay more attention and support the survival of small and medium-sized businesses in the country.

He pointed out that the current business environment with several challenges including the volatile FX, high import duty rates and levies, multiple taxation and so on, all combine to dampen the morale of business owners.

Speaking at the 40th anniversary celebration of the Silky Touch Emporium which was held at the flagship store in Lagos recently, he said government and businesses are intertwined as the success of entrepreneurship rests mostly on government and its policies.

“If the government wants more money, it must start supporting business. When businesses are alive and well, they can pay taxes and levies. We have been calling on the government to prioritise our wellbeing and survival, business closure should ordinarily be a great source of concern for the government, and I believe with what is happening now with businesses, more attention must be paid to this sector,” he said.

Lamenting the heavy levies and duties slammed on imported items, Okolie said this is another cog in the wheel for them. “If you bring goods from some countries like China, you pay less. I bring in items from Italy and pay way more in terms of duties. The difference between importing from China and Italy is very stark, it is like light and darkness. You can load a whole container from China for $8,000-10,000 while one item from Italy can go for as high as $10,000 and duty is charged accordingly. This is no doubt affecting business,” he said.

Expressing his delight at celebrating four decades in business, he regretted that the current state of the economy has forced many businesses to completely shut down. He however added that with perseverance and consistency, they have been able to survive the different macroeconomic challenges.

“When I started this business 40 years ago, one dollar was changing for less than one Naira. In 1989, one dollar jumped to N8.90/9 and I told myself that if the dollar got to N10, I would not trade anymore. However, today, that same dollar is changing to N1, 700. How can businesses thrive like this? The first car I ever bought, which was brand new, cost N5,200. How many entrepreneurs today can afford to buy a second-hand vehicle and never mind a new one? The current business environment is very unfriendly and it is killing off SMEs which are supposed to be the lifeblood of the economy,” he said.

Expressing fear for the future of businesses, he said hope is dimming as profit margins are getting slimmer daily. Urging entrepreneurs to maintain honesty and consistency, he advised that these harsh times call for a high level of discipline, patience and perseverance.